I paused at @TermMax example where an FT is bought for $0.80 and redeemed for $1 at maturity.
That produces a 25% return, but it does not mean every TermMax market offers a 25% fixed rate.
The return comes from two things: the price paid for the FT and the time remaining until maturity.
A move from $0.80 to $1 over one year is very different from the same move over three months. This is why the TermMax interface calculates effective APY alongside slippage and fees before the trade.
That detail matters.
What is fixed is the FT’s claim to one debt token at maturity. Its purchase price, early exit price and available liquidity can still move.
So a lender knows the destination, but the quality of the trade still depends on where they entered and how long they must wait.
I would not judge a TermMax market from its displayed rate alone.
I would check the FT price, maturity date, effective APY and whether enough liquidity exists if I need to exit early.
The redemption value may be fixed.
The return is only attractive if the entry price makes sense.
#TermMax

What would you check first before buying an FT?